The term “liquidation” refers to the legal dissolution of a company that is insolvent, which means that it does not have enough in the way of assets to pay all of its creditors in full. You would only need a…
The Corporations Act imposes a clear duty of care on directors not to trade if your company is insolvent. If your company is insolvent or at risk of becoming insolvent and you continue to trade-on, the consequences can be disastrous…
If you have established that your company is insolvent, you should take immediate steps to ensure that it does not continue to trade whilst it is insolvent. Allowing a company to trade whilst it is insolvent can have serious consequences…
What are the obligations under the law? It is firstly important to understand what the law expects of company directors with respect to keeping proper books and records. The Corporations Act also clearly sets out the obligations of a company…
A company liquidation involves appointing a liquidator to wind up a company’s affairs. The first step in a liquidation is to ascertain and then realise (sell) any company assets. Any funds that become available from the sale of the assets…
A Pty Limited or Limited company is essentially an entity unto itself, meaning that any assets or debts belong to the company. However, there are some instances in which a company director can become personally liable for company debts: 1….
What are my Insolvency Options? Many Australian businesses continue to face financial hardship after the Global Financial Crisis. Many businesses don’t ask for help at the right time, or they don’t receive the right assistance. For those who are looking…